Two to buy as Trump's “Truce” drives the market's up

by , 24 May 2018
Two to buy as Trump's “Truce” drives the market's up
As earnings season winds down, the market is taking cues from geopolitics and the weekly macro-economic data that comes out.

The biggest boost the markets will receive is from America and China, agreeing to put aside international trade differences to work on a wider agreement. This is very positive and will be a tail wind for markets to rally higher. Add this to the bullish phase global markets are currently in, with improving bullish indicators.

For example, the increasing percentage of companies above 200 day moving averages, advances and declines ratio and improving market breadth will improve risk appetite.

The risk on sentiment will drive demand in emerging markets and higher risk assets. We should see the rand recover some of the ground lost against the USD the past few weeks, which will be supportive of the banks and retailers; many are down over 10% in the past month. stocks like FSR, SBK, CML and SLM.

Investors should look at accumulating shares of quality companies that have pulled back significantly.
        
________________________________________
  
 
There is only one way to profit from Eskom’s Coal Cliff – and SA’s new energy revolution and that is to invest in these Three Penny Stock Eruptors:
 
Penny Stock Eruptor #1:
A coal miner that's set to quadruple production and come to Eskom's rescue
 
Penny Stock Eruptor #2:
The only such business in Africa, with the technology to turn refuse into electricity
 
Penny Stock Eruptor #3:
A South African company that builds and manages renewable energy plants
 
________________________________________
 
   
Last week’s movers and shakers… 
 
 

Two to Buy
 
MTN enters buying zone below R115.50
 
MTN has been trading in a sideways channel between R110 and R135 for a little more than two years. This has given us many profitable short-term trades in that time.
 
After banking 10.64% from our last trade on 03 May, we have been given another opportunity.
 
Management is doing all the right things, which should see a continued improvement in investor sentiment.
 
We expect MTN to bounce from the R115 level, so buy below R116 for a move toward R130.00. Risk sensitive traders should phase in their position in two tranches. Place a second buy at R11.55 for a volatility spike lower.
 
Go long MTN below R116 for a move to R130.00,place a wide stop loss at R108.45 (and we’ll trail it up as the stock moves in our favour).
 
FirstRand to bounce on a stronger Rand
 
FSR was down over 20% in the past three months and trading at its 200-day moving average, this is a significant support level, which buyers will defend. With the overnight rally in the Rand, we should see it rising to R65 in the near term and possibly R70.
 
Based purely on the chart, it would be a good time to go long, add the Rand strength and you have a high probability short term trade that can bank you over 5% (ungeared).
 
Go long FSR below R61.15 for a move to R65 and an ungeared gain over 6%. Place a stop loss at R59.90.
       
________________________________________
 
 
After 15 years… master trader Timon Rossolimos finally unveils a unique trading strategy that…
  • Gives you tactical superiority over the markets…
  • Eliminates all confusion and indecision from trading…
  • And could make you up to 60% on any given trade…
________________________________________
 
 
Short term Ideas 
 
  • MTN: New buy at R116 looking for gain of 10%
  • FSR: New Buy at R61.15, for 5% gain.

Long Term Ideas   
   
  • African Rainbow Minerals: Buy at R110 or less.
  • Dischem: Buy today to bag a small dividend. Buy dips below R30.50 for a move above R37.00
  • Shoprite: Support above R233 should arrest further declines.  Buy below R245.00. Target of R285.
  • Anglo: 8% open gain, next resistance level at R350.
  • Sasol: Rallied above R490.00 as expected. Move stop loss to R450 for a 12.5% gain.
  • Aspen: Accumulate on weakness below R260.
  • Sygnia: Add below R12.50.
  • Santova: Buy below R3.00.
  • Merafe: Accumulate below R1.55.
  • Jubilee: Speculative buy below R0.50.       
  • MTN: Maintain position, accumulate for long term below R120.00.
  • Glencore: Still bullish. Hold
  • Wescoal: Long term buy. Add below R1.80
  • Naspers: Increase exposure below R3,000. 
 



Two to buy as Trump's “Truce” drives the market's up
Rate this article    
Note: 5 of 1 vote

Have a trading or investing question? Click Here


Related articles



Related articles


Watch And Learn




Trending Topics